Casual conversion refers to the process where a casual employee transitions to a permanent part-time or full-time role, either by request or employer offer. In Australia, this right is protected under the Fair Work Act 2009, following amendments introduced in March 2021. This reform aims to give casual employees more job security when they meet certain eligibility criteria.
The Australian workforce includes a significant number of casual workers, particularly in industries like retail, hospitality, healthcare, and education. While casual roles offer flexibility, long-term casual employment without entitlements like paid leave and job security raised fairness concerns.
Casual conversion ensures that those who work regular, ongoing hours for an extended period are given the opportunity to transition to a more stable employment type.
To be eligible for casual conversion, a casual employee must:
This applies to employers with 15 or more employees. For small businesses (fewer than 15 employees), the process is employee-initiated only.
Under the Fair Work Act, employers with 15+ staff must:
Employers are not required to offer conversion if there are reasonable grounds, such as:
Casual employees can also initiate a request for conversion after:
Requests must be in writing and can only be refused on reasonable business grounds.
Microkeeper helps streamline the conversion process through:
See how Microkeeper supports flexible workforce management
Yes. Conversion is voluntary and casuals may prefer to retain flexibility and the 25% casual loading.
Yes. Converted employees are no longer entitled to casual loading but gain access to leave entitlements.
Employees can contact the Fair Work Ombudsman to lodge a complaint or seek assistance.
They may not be eligible for conversion, but employers should still consider case-by-case discussions.
Casual conversion creates a more balanced and fair employment system. By offering casual staff the opportunity to become permanent when appropriate, employers demonstrate their commitment to job security and compliance. Microkeeper makes it easy to manage this process and track eligibility with confidence.
Disclaimer: This entry is intended for informational purposes only and does not constitute legal advice. For tailored guidance, contact Fair Work Australia or an employment law specialist.